BusinessReport.com

When Tara subdivision was developed in the 1960s, it represented the best of what many buyers were looking for: new, affordably priced homes in a central location away from downtown.

Some 40 years later, the neighborhood still has location and affordability going for it, but it’s lost some of the cache that made it desirable to a different generation of homeowners.

Today, the subdivision is holding its own. With a few exceptions, it has yet to see a wholesale sweep of renovations or teardowns as have other area neighborhoods. The homes are too old to have the latest amenities but not old enough to have charm, and many younger buyers are opting to go elsewhere—especially in what is increasingly a buyer’s market.

That dynamic is reflected in statistics. The average home sale price so far this year is $202,000, down nearly 15% from $237,000, which was virtually unchanged from 2006. Median sale price, often a more accurate reflection of activity in a given area, shows a more modest decrease of 3% from the low $200s in 2006 and 2007 to $196,000 so far this year.

“The houses that have sold well are the ones that have had wonderful renovations,” says Realtor Janet Anderson of ReMAX/First, who does a lot of business in the neighborhood. “The ones that need to be redone have suffered.”

That might be bad for sellers but it’s been good for buyers and investors like JoAnn Vasta, who owns several pieces of property, including two in Tara. She picked up a 2,100-square-foot house last spring for just $140,000, or about $66 a square foot. The house was originally listed at $215,000 but needed considerable updating and sat on the market for more than a year before she bought it.

“I think you can get a lot of really good deals in this neighborhood,” Vasta says. “But I don’t see a lot of young families moving in yet and taking advantage of it.”

Vasta also got a good deal on the home she has lived in for the past seven years, which is not far from the one she purchased last spring. She paid $115,000 for the 2,100-square foot property—a bargain that she got because the house had been abandoned so she picked it up at auction.

Realtors like Anderson think it’s just a matter of time until more young buyers recognize the advantages Tara has to offer. It is centrally located, nestled between Old Goodwood to the west and Broadmoor to the east, and is just minutes from several major thoroughfares, including Airline Highway and interstates 10 and 12.

“The way I market Tara is the location,” Anderson says. “It’s close to everything. Besides, you can get a lot of house for your money.”

What’s more, because the neighborhood was developed more than 40 years ago, many of the trees are now mature, providing both shade and ambience. A new sidewalk through the neighborhood gives residents a path for jogging and strolling, and because of the era in which the subdivision was developed, all of the utility lines are underground and most of the homes are brick.

“That means low maintenance, which is appealing to a lot of people,” Anderson says.

The neighborhood also has its own large, public high school. Originally, that was one of the selling points of the development. Now, with changes in the school system, some might consider Tara High School to be a detriment to the area rather than an asset. But Vasta is among those who enjoy having the school nearby, with the constant swarm of activity that it brings.

“Some neighbors complain that they don’t like having the kids walk through their yards after school to get to Taco Bell,” she says. “But I give them permission to walk down my driveway, and I’ve never had any trouble.”

Residents say Tara has a strong neighborhood association. Dues are a mere $45 annually, which includes patrols by an off-duty police officer, and crime has not been a problem in the subdivision, save for the occasional petty thefts.

All of which makes the neighborhood attractive on paper. But realtors and residents believe that until many of the older homes get a serious overhaul—which includes not just updated kitchens and baths but replacement windows and architectural shingles on aging roofs—home prices will not increase to reflect the real value that the convenient development with its spacious lots has to offer.

“Tara is one of those neighborhoods that is always going to hold its own,” Anderson says. “But it’s at a point where people need to invest in serious updating.”